Chancellor George Osborne has delivered his 2013 Budget statement, and the good news for motorists is that the 1.89p per litre (ppl) fuel duty rise has been cancelled.
The increase was originally planned to happen on 1 September but has now been scrapped altogether. Fuel duty rates will instead remain at 57.95ppl until September 2014, in a decision that's likely to cost the Treasury around £1bn in lost revenue over the next 12 months.
The news comes as a welcome relief to motorists, who have seen petrol prices soar to as much as 138.32ppl in February. Mr Osborne said: “Together with the British people we are, slowly but surely, fixing our country’s economic problems.”
By scrapping the increase in fuel tax, petrol will be 13ppl cheaper than if the duty had not been frozen over the last two years. According to the Chancellor, the savings are substantial: “For a Vauxhall Astra or a Ford Focus that’s £7.00 less every time you fill up”.
Mr Osborne said: “We inherited a fuel duty escalator that would have seen above inflation increases in every year of this Parliament. We abolished the escalator and now we’ve now frozen fuel duty for two years. This has not been easy. The Government has foregone £6billion in revenues to date.”
Edmund King, president of the AA, welcomed the news, but with “relief, rather than joy”.
Professor Stephen Glaister, director of the RAC Foundation, said: “Through this move the Chancellor will lose about £1 billion a year in duty and VAT income, but tens of thousands of people will be saved from being forced to give up their cars against a backdrop of generally rising running costs.
“It is welcome that George Osborne has listened to the concerns of the nation’s 35 million motorists about the inflammatory issue of near-record pump prices.”
Disqus - noscript
Thanks George for scrapping the fuel duty - your too good to us motorists, twat.
Well, Woop-Te-Doo. I wouldn't like to be a drowning man depending on George Osborne for rescue. His idea of helping would be to defer attaching lead weights to your ankles....
I don't see many people driving as if as if the price of fuel is the first thing on their mind. Tens of thousands being forced to give up their cars and use public transport could only be a good thing.
It looks like you haven't used public transports in a while, or you live in one of the few places in england where public transport is perfect.
Because from where i live, public transport is expensive, unreliable and full of rude kids throwing crap at people on the bus at night or during school start/finish times of the day.
To not to mention the state of most Arriva buses:S.
Osborne is a smug twat who doesn't live in the real world.
I use the bus to go into town occasionally - but wouldn't like to be dependent on it as my only means of transport.
Anytime I use the bus, I always end up getting some kind of strange bug or Flu virus.
The bus heating is poor, so the windows are streaming with water condensation and everyone coughs and sneezes all around me.
I think most of those crusading for the use of public transport must be unable to drive, for one reason or another, and are jealous of whose who can enjoy the comfort of using their own private transport.
just like the rest of his colleagues
That's brilliant a clever man instead of putting fuel duty up & pricing people off the road & risking there livleyhood jobs in many cases business etc & in effect helping unemployment go up which would cost the government billions more he's just used his brain & it's only cost £1 billion a year thats a great saving & alot of money for just 1.89p a litre That just show's how many billions there making god knows where they're spending it it's certainly not on resuface worn out roads ?